Retirement Retirement Planning

The 401(k) Decision People in Their 80s Regret the Most

This financial wisdom will help younger generations.

By Catherine Collins

Edited by Laura Hohenstein

Updated Feb. 16, 2026

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Reaching age 80 is a wonderful accomplishment. Those who hit this milestone are full of wisdom about how to best save for retirement (and the mistakes to avoid). Listening to some of their cautionary tales about steps they wish they'd taken financially can help younger generations learn how to stretch their retirement dollars further.

With people living longer than ever before, it's especially important to plan for retirements that can last 20 or 30 years. So, here are some of the top regrets retirees in their 80s have and what we can all learn from them.

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Not prioritizing their own security

It's common for parents to prioritize their children's well-being, but sometimes parents do it to their own detriment. For example, some parents help fund their children's college education but underfund their retirement accounts. However, living into your 80s and beyond costs more than people realize due to health costs, long-term care needs, housing maintenance, and more.

Many people in their 80s wish they'd invested more so they'd have more financial flexibility later in life. After all, worrying about money can be stressful and emotionally taxing, which is not something octogenarians need in addition to housing decisions and health concerns.

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Underestimating health care expenses

Health care in the United States is exorbitantly expensive. A Fidelity Investments' 2025 Retiree Health Care Cost Estimate found that most retirees will spend more than $170,000 on health care during retirement. Retirees who have more complex or more serious health problems could spend even more. Many retirees wish they had accounted for these costs and planned more seriously for them.

Plus, health care costs can spike out of nowhere. One accident, one fall, or one surgery can lead to months of rehabilitation when you're in your 80s. Stress about how to pay for this can negatively impact emotional well-being and confidence, too, so it's important to have a financial cushion.

Making mistakes with RMDs

RMD or required minimum distributions are required withdrawals that retirees must take from their 401(k)s at a certain age. The Secure 2.0 Act raised the RMD age to 72, and that will be raised to 75 in 2032. Retirees who don't take a distribution by the deadline may have to pay penalties. Additionally, those who don't plan their distributions and how they may impact their income and tax liability may have a larger tax bill than they expect.

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Being unprepared for emergencies

Many retirees in their 80s wish they were more prepared for the unexpected. A study from the Center for Retirement Research found that retirees spend 10% of their fixed income on unexpected emergencies.

These expenses can be challenging, especially for retirees in their 80s who are drawing down on their retirement accounts. Having a solid emergency fund in place can help retirees feel more prepared to manage cash flow when the unexpected happens.

Not having a withdrawal strategy

Many retirees regret not having a solid financial plan. Retirees who don't have a withdrawal strategy, in particular, might not be using their retirement money in the most advantageous way.

Retirees can consult with a financial planner and an accountant to discuss the best ways to withdraw funds and which accounts to use first. This is especially helpful for those who have multiple types of retirement accounts, such as IRAs, 401(k)s, pensions, and HSAs.

Not investing more

Many people in their 80s regret not continuing to invest. For example, even though retirees in their 80s have to take RMDs, they can still reinvest those funds if they aren't using the money to live on. Taking the time to track spending and live on a budget can help retirees continue to grow their wealth, even as they age.

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How to get support in your 80s

If retirees need extra support when it comes to their 401(k)s and retirement strategy, consult a licensed financial planner and an accountant. It's especially helpful to have support during economic uncertainty or when the market dips. Having a professional to reassure you and advise you on the next steps can go a long way in giving retirees peace of mind.

Bottom line

Many retirees in their 80s are able to retire comfortably. However, many of them still have regrets about the way they handled preparing for retirement. Additionally, many of them underestimated their costs in retirement, finding it to be more expensive than expected.

Their regrets show how important it is to take the time to plan properly for the future, especially when it comes to emergency funds, tax strategy, and the best way to make 401(k) withdrawals. By reading about their regrets, younger generations can better prepare for the road ahead, especially when it comes to managing cash flow and the unexpected.

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